Marketplace Morning Report

Episode: "The end of 'de minimis' exemption, four months on"

Date: December 26, 2025
Host: Nova Safo (in for David Brancaccio)

Brief Overview

This episode addresses the recent surge in precious metals prices and explores the economic and business impacts since the U.S. eliminated the “de minimis” exemption on imports under $800, four months after its enactment. The report also covers a notable technology licensing deal between Nvidia and AI chip firm Groq, providing insights into current business trends, international trade policies, and implications for American consumers and small businesses.

Key Discussion Points and Insights

1. Precious Metals Prices Reach New Highs

• Record metals prices:

  • Gold up over 70% for the year, on track for its biggest gain since 1979
  • Silver up 150%
  • The U.S. dollar is at a two-month low and losing value

• Economic and geopolitical drivers ([00:31]–[02:32]):

  • Central banks are shifting reserves from U.S. Treasuries to gold due to increased global uncertainty
  • Factors include new tariffs, America’s changing global role, and ongoing trade/geopolitical tensions
  • This currency trend affects the "feel" of the U.S. economy for average Americans

• Notable Quotes:

  • Diane Swonk (KPMG), on what’s driving gold prices:

    "Just about everything you can imagine is behind it. Everything from the uncertainty that we saw spike in the wake of the April announcements about tariffs to uncertainty about where the US is and its role in the world." ([01:03])

  • Swonk explains the disconnect in the U.S. economy:

    "It keeps giving us an economy that adds up on paper to look better than it feels to most Americans." ([01:49])

2. Nvidia’s Licensing Deal with AI Chip Firm Groq

• Deal structure:

  • Nvidia licenses technology from Groq (AI chipmaker)—not an acquisition
  • Leaders from Groq are joining Nvidia
  • Avoids regulatory hurdles of traditional acquisitions ([02:33]–[04:06])

• Industry trend:

  • Licensing or partial investment deals are increasingly common in big tech (Meta, Microsoft, Amazon have done similar deals)
  • Such deals provide access to innovation while preserving startup independence

• Groq:

  • Founded in 2016, valued just under $7 billion earlier in 2025
  • Its chips are designed for AI inference (the process AI uses to generate answers)

3. The End of the “de minimis” Exemption: Four Months Later

Background:

• The “de minimis” exemption let items under $800 bypass U.S. tariffs. Ended August 2025.
• The policy targeted concerns over foreign e-commerce giants flooding the U.S. with tax-free goods ([04:37]–[07:32]).

Impacts:

• On overseas sellers:

  • Example: Jess Van Dan, jewelry maker in Australia, lost a significant portion of business:

    "30 to 40% of my jewelry business was in the US and now I've had to stop that entire part of my business. And I'm not the only one." ([05:50])

• On U.S. receivers:

  • Madeleine Knudson, small business in North Dakota, notes shift in sourcing and price sensitivities:

    "I tend to look where they're shipping from because that impact has caused us to raise our prices for things. People are definitely looking at prices more." ([06:14])

  • Knudson adds:

    "With a bigger business they're able to like beat the cost a little bit more to keep it less expensive. . . we're just a little like mom and pop shop, so we can't eat all the extra costs." ([07:06])

• Statistical changes:

  • Number of sub-$800 parcels into the U.S. dropped by 54% since the change (source: Universal Postal Union).

• Who benefits?

  • Logistics/courier firms, like DHL, saw increased high-traffic “seasons” as businesses rushed to ship goods before new rules
  • Oscar De Bock (DHL):

    "2025 has been a super complex year. Every time that something new got announced, then shippers were making sure that their products would be shipped before this new tariff would come. So we got high seasons, many of them, throughout the year." ([06:47])

• Policy rationale:

  • U.S. Commerce Secretary Howard Lutnick:

    "Countries were sending in little packages for free and knocking out our mom and pop businesses across America." ([05:37])

  • President Trump (paraphrased by reporter): saw previous rule as a scam against American small businesses ([05:26])

Conclusion:

• As the flow of tax-free goods slows, the burden of higher prices seems to fall on U.S. producers and consumers, particularly impacting small businesses.

Notable Quotes & Memorable Moments

• On central banks and gold:

  "They're trading out of US Treasuries and into metals on their balance sheet because they want to be less dependent on the US Dollar in this precarious time..."
  — Diane Swonk ([01:03])

• On the rollback’s small business impact:

  "I’ve had to stop that entire part of my business. And I’m not the only one."
  — Jess Van Dan ([05:50])

• On logistics sector “high seasons”:

  "We got high seasons, many of them, throughout the year."
  — Oscar De Bock, DHL ([06:47])

Timestamps for Important Segments

• Precious metals surge explained: [00:31]–[02:32]
• Nvidia/Groq licensing deal: [02:33]–[04:06]
• End of de minimis exemption & global trade fallout: [04:37]–[07:32]

Overall Tone

The episode balances brisk economic reporting with on-the-ground perspectives from small business owners, illustrating the complexity and real-world impact of shifting global trade policies and economic forces on both the macro and micro level.

Useful for:

• Getting a rapid, clear understanding of recent currency/commodity trends
• Understanding how tech companies are sidestepping regulation through licensing
• Gaining perspective on the real-life implications of U.S. trade policy changes for small businesses, foreign sellers, and logistics companies